Kering Auto Deng Yuanxun: Subvert the traditional terminal transportation tools, and give the courier brother safety, decency and dignity

On December 16-17, the 100 Future Unicorn Summit and 2021 Chuangbang Annual Meeting were held at the Shanghai Marriott Hotel.

With the theme of "Beyond Business", the summit invited the most representative benchmarking enterprises, investment institutions and their representatives to focus on the future unicorn history, interpret the social value behind the brand beyond business, and find the power of transcendence in insight.

The meeting also awarded the "Entrepreneur of the Year", "Entrepreneur of the Year" and "2021 Entrepreneur of the Year" and "2021 Entrepreneurship State 100 Future Unicorn". At the same time, the summit also specially displayed the ESG innovation cases of unicorn companies in the future, and encouraged more enterprises to practice social responsibility.

At the summit site, Deng Yuanxun, partner and chief value officer of Kering Motors, delivered a keynote speech entitled "The "Subversive Power" of "New Species" - When the Digital and Intelligent Upgrading of Terminal Logistics Capacity is Underway", and his sharp views are as follows:

1. What Kering Auto has to do is to use advanced scientific and technological means and innovative models to digitize and intelligentize them, subvert the traditional transportation tools of terminal logistics, and give the courier brother a safer and more efficient work experience, and a more dignified and decent life.

2. It is difficult for the traditional automobile factory architecture to make a new species of express delivery car with high cost performance, while Kering Automobile integrates cross-border resources, integrates 3C, IoT and automobile supply chains, starts from the ultimate user experience, overturns the traditional automobile design framework, adopts the underlying innovative design concept, and applies new materials to create a new species of automobile that meets the needs of the rapid development of terminal logistics.

3. I hope that in the future, the courier brother can have a fixed asset, ensure the peace of mind at the same time, but also use the car as collateral. The courier brother can be his own boss and serve different platforms according to his own needs, just like today's online ride-hailing drivers earn income by taking orders on platforms such as Didi, which really improves their happiness index.

4. Different from the life of traditional tricycles of one to two years, the new species created by Kering extends the life cycle of express delivery vehicles to six years or even longer, providing them with the ultimate user experience on the basis of ensuring that the use cost borne by the brother does not change significantly.

The following is the content of the speech, compiled by Chuangbang:

Hello everyone! Today is the first time I have come to the Summit of Startup State as an entrepreneur. Prior to joining Kering, I was a Managing Director and Managing Partner of Nokia Growth Fund.

Why did I go from being a business manager and investor to an entrepreneur? In fact, mainly because I think Kering is doing something very meaningful. Just said that in the current market environment, it is not easy to find good investment projects, but Kering Auto has the confidence to grow into a high-quality enterprise, fully integrate the ESG concept in terms of product concept and business development (from the perspective of environment, society and corporate governance, to measure the sustainability of enterprise development), and promote industry progress and create social value as an important indicator to measure its own development and corporate value.

What Kering cars are going to do

Today I would like to share with you what Kering Cars has to do.

I believe that living in China during the pandemic is a very happy thing for the whole world. Thanks to the country's perfect logistics system, our daily needs have never been interrupted, and we can still enjoy a more convenient life even if we are isolated at home for a long time. This is an unattainable picture for other countries.

Nowadays, as a logistics industry with a national combat readiness level infrastructure, the entire system has undergone many innovations and reforms from the front end to the middle end, and the level of intelligence and digitalization has been continuously improved. At the end of the road, as the most common distribution tool, tricycles still fill all corners of the city. Combined with the current situation of the rapid development of the industry and the various problems faced by terminal distribution, the tricycle has become a transportation tool that needs to be upgraded and subverted.

Our country has always been concerned about the lives of grassroots people, and the 14th Five-Year Plan clearly put forward the guidelines of "common prosperity". However, we can see that there are still tens of millions of courier brothers running around in difficult living and working conditions every day, experiencing wind and rain. Winter is coming, are they safe to drive on the road on snowy days? Just past the double eleven, how did they survive the pressure of being urged? Can they squeeze out five minutes to take a nap in a hard seat during a sleepy noon?

Tens of millions of courier brothers shuttle through every corner of the city in this way. They have worked hard and hard to ensure our daily convenience and comfortable life.

What Kering Auto has to do is to use more cutting-edge technology and more innovative models, digitize and intelligentize, subvert the traditional transportation tools at the end, and give the courier brother a safer and more efficient work experience, a happier and more dignified life.

Today I want to talk about a new species.

In fact, the problem of terminal capacity needing to be upgraded has existed for many years, but why is there no good solution? Why can't so many car companies make a new species of courier truck that is very small and flexible, and can easily deliver packages in various communities?

Because it's really a very big problem.

At present, more than two dozen cities in the country have banned tricycles, for example, there are no tricycles in Shanghai now. Instead, some cities have launched "4+2" solutions, that is, four-wheel micro-surface plus two-wheeled electric vehicles, but this is not an ideal tool. Take the micro-surface, first of all, its price is tens of thousands of yuan, can not pass in the community, and a considerable proportion is fuel vehicles; limited by the cargo capacity and endurance, two-wheeled electric vehicles are not a long-term solution.

Therefore, at present, in response to the above problems faced by cities and industries, the market is calling for a new species to upgrade and subvert the traditional transportation tools at the end and provide new and applicable solutions.

And how difficult is it to build this new species, how high is the threshold, and what kind of team is needed? I'll share with you later why our Kering team has the ability to make this new species.

As a social proposition, the work experience and happiness index of the courier brother are arousing the high concern and attention of the government and policies. There is no doubt that the current working environment of the courier brother is not satisfactory; the current situation of the industry that ensures the timeliness by forcing the courier brother to work at full capacity needs to be improved urgently; the safety problems caused by traffic accidents related to express delivery vehicles are particularly shocking, which is an important reason for the government's determination to ban tricycles.

Admittedly, there are still many cities that do not ban tricycles, but most of them are driving on the road in a non-compliant capacity. Because the tricycle is not digital and has no license plate, even if it runs a red light and goes backwards, it cannot be monitored and traced, which not only seriously affects the traffic order, but also brings worrying life safety hazards. Therefore, from the government level, the tricycle chaos is undoubtedly a huge pain point, which increases the difficulty of traffic control and urban governance.

In order to provide more and better services to the people, the national and local governments are also vigorously promoting the construction of smart cities. At present, each city already has a considerable level of data collection and perception capabilities, but there are still data gaps in remote alleys, community corners and other areas, and our terminal logistics vehicles equipped with sensors shuttle through cities and communities with capillary density, which can effectively make up for the data needs of the government in this regard and help the construction of smart cities.

For logistics enterprises, it is not only necessary to pay for the situation that the courier brother is detained and fined every day, but also to bear the responsibility for safe production brought about by frequent traffic accidents. In the wave of rapid development of the express delivery industry, to take into account the work efficiency and safety of the brother, logistics companies are also facing huge challenges, and they also need to replace the differential level of transportation tools as a solution.

As mentioned earlier, logistics as an infrastructure industry, its development is related to the national economy and people's livelihood. All along, there has been no shortage of enterprises committed to the intelligent and digital innovation and upgrading of the logistics industry, but the terminal distribution, as we have seen, is still stuck in the most traditional and old, unsafe and non-compliant tricycle stage. This is a strong demand of the industry, but also a huge space, a huge market.

According to the data released by the State Post General Administration, the current average daily express delivery order volume in China is about 330 million, and it is expected that this number will grow to 1 billion by 2025, and the labor efficiency of terminal distribution has reached a bottleneck.

For the courier brother, the current daily hard work of the package, the intensity and pressure of the work has reached the limit, if the delivery vehicle is not upgraded, how can they cope with the increase in the average number of parcels per day of 330 million to 1 billion?

The pandemic has driven a change in people's consumption habits, and many people who did not have online shopping habits have become increasingly dependent on online shopping. At present, China's express order volume accounts for 70% of the global total and maintains a strong growth trend. Therefore, we say that creating safe, efficient and intelligent terminal transportation tools is crucial to promoting the stable and rapid development of the logistics industry and the national economy and people's livelihood.

Who is Kering Cars

Let me introduce the Kering automotive team. I believe that some friends here have heard of our "Xiaomi model to do commercial vehicles". Speaking of our relationship with Xiaomi, first of all, we have two investors who are the co-founders of Xiaomi Group - Liu De and KK Huang Jiangji. Both individually invested in Kering and served as independent directors, providing invaluable perspectives on product design and business model in addition to participating in the formulation of the company's strategy. In addition, the former vice president of Xiaomi's ecological chain (Zhao Caixia), who has built hundreds of ecological chain companies, also joined Kering in March this year as chief operating officer.

Our new partners also include Mr. Teng (Teng Hongfei), who was in charge of Huawei's consumer goods business and led the team to expand the market size to more than 100 billion yuan. During his tenure at Huawei, he promoted the transformation of the company's overall business and organizational structure from B2B to B2C, built and operated the Huawei experience store system, and successfully laid out nationwide from pre-sales, in-sale to after-sales.

Originating from the practice of helping Nokia to implement industrial landing in China, our team has a lot of experience in relationship development and strategic cooperation, from partners to middle-level personnel.

Since it is a new species, it is necessarily not through the traditional way to build a car. Kering Auto brings together top experts and talents in automotive R&D and manufacturing, intelligent networking, 3C, IoT, composite materials, three-electric systems, supply chain and other fields. Different from the DNA of traditional car companies, the diversified team ensures that we carry out the underlying architecture level innovation from product design, supply chain, production process, material application, etc., and continue to work to make the car lighter and better, more suitable and more energy-saving, and on this basis, superimpose intelligence, digitalization, and rapid improvement and iteration.

In terms of design concept, Kering continues to pursue a higher level of integration and modularization, which not only enables us to achieve intelligent production, but also makes our products more low-carbon, environmentally friendly, easy to recycle and easy to reuse.

As a member of the ESG Committee of Standard Chartered Bank Group and chairman of the ESG Committee of Kingsoft, I have always been very concerned about the development and consideration of the ESG concept. Combined with my past experience, such as at Nokia, what I am most proud of is not that I led the team to increase Nokia's Market share in China from more than 10% to 40%, but how we solved the problem of contact between hundreds of millions of family members of migrant workers. Looking back now, it is the most meaningful thing to apply to Nokia headquarters for ultra-low-end mobile phones, to allow hundreds of millions of migrant workers to keep in touch with left-behind children and the elderly at home, and to promote the introduction of chip technology research and development into China during his tenure as president of AMD Greater China.

So at present, for Kering, we are also committed to the contribution of ESG. Improving the working environment of the courier brother, improving the happiness index of the brother, and helping the efficient development of terminal logistics and the construction of national basic logistics facilities are all things that our team hopes to do.

What kind of car Kering is going to make

Come and see our car. First of all, our product is a safe new energy vehicle; secondly, it retains the driving habits of tricycles, has made great improvements in flexibility, and comprehensively pursues the ultimate user experience in the design details. For example, on the basis of fully ensuring the safety of the brother, our car is the same meter wide as the current express tricycle, but it has increased the cargo container load by 50% and achieved a leap forward in intelligence.

Compared with the cost of the current use of tricycles by the courier brother, we have targeted the application of composite materials to reduce costs, aiming to upgrade the transportation tools for the brother without increasing its use costs. Specifically, the service life of the tricycle is about two years, and Kering products extend the life cycle of the transportation tools to six years or more, and the monthly cost of use of the little brother has not changed much. Compared with the current purchase cost of tens of thousands of yuan for small vehicles on the market, we have greatly reduced the threshold and cost of car purchase and use cost of express delivery brothers.

In addition, we have four core technology segments to support Kering to become the world's leading commercial vehicle developer, including new species definition capabilities and overall modular design. At present, the passenger cars and commercial vehicles we see are assembled by thousands of assemblies, and we have broken through the four major processes of traditional automobile punching and welding and coating through the ultimate modularization and integration of the whole vehicle, and realized the assembly of the whole vehicle with only more than 20 assemblies. This is also an important reason why we have been able to significantly reduce production costs.

Our supply chain fully integrates cross-border resources, integrates 3C, IoT and automobile manufacturing fields, and creates a new species of express delivery vehicle with the ultimate cost performance, and takes into account green energy, full-life cycle battery management, green environmental protection of vehicle production and other aspects.

Let's talk a little bit about ESG. In terms of environmental protection, we use efficient lithium battery technology, intelligent battery management, modular production, and material recycling and reuse. In terms of clean energy, we are actively cooperating with to launch hydrogen fuel cells suitable for our products, and will also launch photovoltaic products in a timely manner. Looking to the future, we will not only focus on the new energy available at present, but also continue to pay attention to the future development and application of new energy, and continue to help the realization of the national "double carbon" goal.

In the future, we hope that the courier brother can fully enjoy the ultimate user experience that we have dedicated to creating in the process of work; we also hope that the express delivery vehicle can become the fixed asset of the brother, which can not only be used as collateral, but also make the brother become his boss, serving different platforms according to his own needs, similar to the online car owner earning income through the service Didi and other platforms, which truly improves the living standards and happiness index of the courier brother.

Today, for the first time as an entrepreneur and as the chief value officer of Kering Motors, I hope that what I will share with you is a very meaningful thing, and I hope that our new species can promote the solution of pain points in the logistics industry. Through continuous innovation and continuous improvement of technical level and product strength, Kering Automobile will also integrate the development of enterprises into the efforts and practices of seeking the well-being of users, adding bricks and tiles to the industry, and creating value for society.